Question

"When a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, what consolidation worksheet entry would be made?"

Answer 1

Answer:

No entry is made

Explanation:

When a company applies the partial equity method in accounting for its investment in a subsidiary and initial value, book values, and fair values of net assets acquired are all equal, there would be no entry in the consolidation worksheet. The reason is the initial investment in the subsidiary, the initial value, book values and fair values of net assets acquired are all equal, no changes has been made.